Cipher Mining plans to raise $1.4 billion to fund its Barber Lake data center

Cipher is attempting to raise $1.4 billion for its new Barber Lake data ￰0￱ mining firm is diversifying its portfolio and making an entrance into the AI industry with the construction of the data ￰1￱ Mining ￰2￱ announced plans to issue $1.4 billion in senior secured notes due in ￰3￱ will help fund the company’s entrance into the artificial intelligence (AI) and high-performance computing (HPC) industries. $1.4 billion notes to fund new Texas data center According to a statement released on Tuesday, Cipher’s wholly owned subsidiary, Cipher Compute LLC, will handle the offering, which will be made privately to qualified institutional buyers under Rule 144A of the ￰4￱ Act of ￰5￱ proceeds will be used to finance part of the construction of the Barber Lake Facility, a major data center project near Colorado City, ￰6￱ site will support Cipher’s shift to AI and cloud infrastructure from Bitcoin ￰7￱ notes will be guaranteed by Cipher Barber Lake LLC, which is fully owned by ￰8￱ will also be secured by top-priority claims on most of the assets owned by the issuer and guarantor, by the shares that Cipher Songbird LLC holds in Cipher Compute, and by funds in an account managed by Fluidstack USA II ￰9￱ completion of the Barber Lake project, Google LLC will also pledge warrants to purchase Cipher stock as part of the note ￰10￱ will provide a completion guarantee to ensure the Barber Lake Facility is finished even if note proceeds and other funds fall ￰11￱ offering remains subject to market conditions and regulatory approvals, so there’s no assurance on the timing or final ￰12￱ also emphasized that the notes are unregistered securities and cannot be sold publicly in the United States without proper registration or an ￰13￱ from crypto mining to AI data centers Cryptopolitan reported in late October that Cipher announced a $5.5 billion, 15-year lease agreement with Amazon Web Services (AWS).

Under the deal, Cipher is expected to provide 300 megawatts of capacity at its facilities for AWS’s AI operations, featuring both air- and liquid-cooled ￰14￱ are set to begin in mid-2026, with lease payments starting in August that ￰15￱ the announcement, Cipher’s shares surged by more than 19% in early trading, making it one of the top-performing Nasdaq-listed firms connected to the AI infrastructure ￰16￱ partnership is one of the many that large tech firms such as Amazon, Google, and Microsoft have ￰17￱ firms are turning to specialized data center operators to secure scalable, energy-efficient capacity for AI computing. Cipher’s CEO, Tyler Page, said the partnership proves that major tech companies, which are often called “Tier 1 hyperscalers,” see Cipher as a trusted provider for their data ￰18￱ AWS deal adds to Cipher’s existing partnerships with Google and Fluidstack, bringing the total value of its AI-related hosting and lease agreements to around $8.5 ￰19￱ is also planning to launch a new project called the Colchis development, which is set to be built in West ￰20￱ project will add 1 gigawatt of capacity over a 620-acre site connected to the American Electric Power ￰21￱ project is expected to go live in 2028 and will significantly boost Cipher’s total development pipeline to roughly 3.2 gigawatts.

Cipher’s third-quarter earnings showed a net loss of $3 million, which is an improvement from last year’s $86 million ￰22￱ improvement and the predictability of long-term contracts have reassured investors about the company’s financial ￰23￱ AWS deal will provide stability for Cipher and help generate stable, recurring revenue for more than a ￰24￱ will also gain independence from the unpredictable cycles of cryptocurrency ￰25￱ miner, Iris Energy (IREN), recently signed a $9.7 billion hardware-supply agreement with Microsoft for AI cloud services, sending its stock up by over 20%. Both firms are betting on the rapid global demand for AI computing capacity, which has far exceeded the availability of data center ￰26￱ $50 free to trade crypto when you sign up to Bybit now